Subcontractor Lien Waiver Form Template for United Arab Emirates

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Key Requirements PROMPT example:

Subcontractor Lien Waiver Form

"I need a Subcontractor Lien Waiver Form for a Dubai residential development project, where the subcontractor will be waiving rights for the final payment of AED 2.5 million to be received in March 2025, with specific provisions for retaining rights to claim for unsigned variation orders."

Document background
The Subcontractor Lien Waiver Form is a critical document in UAE construction projects, used when a subcontractor receives payment for completed work and needs to formally waive rights to further claims related to that specific work. While the UAE legal system doesn't incorporate traditional mechanic's liens, this document serves as an important risk management tool under UAE Federal Law No. 5 of 1985 (Civil Code) and related construction regulations. The form is typically required before release of progress payments or final payments, documenting the subcontractor's acknowledgment of payment receipt and waiver of further claims for the specified work. It helps maintain clear payment records, protects all parties' interests, and supports proper project close-out documentation. The document should be carefully reviewed to ensure compliance with UAE law and project requirements, particularly regarding payment terms and claim waiver provisions.
Suggested Sections

1. Project Identification: Details of the construction project including project name, location, and reference numbers

2. Parties: Identification of the subcontractor providing the waiver and the contractor/owner receiving it

3. Payment Acknowledgment: Specific details of the payment received, including amount, date, and payment reference

4. Scope of Work: Description of the work or materials provided for which payment has been received

5. Waiver Statement: Formal waiver language releasing rights to claim additional payment for the specified work

6. Certification: Subcontractor's certification that all lower-tier subcontractors and suppliers have been paid

7. Execution: Signature block with date and witness requirements as per UAE law

Optional Sections

1. Conditional Waiver Provisions: Used when the waiver is conditional upon receipt of payment, including specific conditions that must be met

2. Retained Rights: Include when certain rights need to be explicitly preserved, such as claims for retention amounts or unsigned change orders

3. Lower-tier Releases: Additional section required when there are multiple tiers of subcontractors requiring separate releases

4. Islamic Finance Compliance: Required when the project involves Islamic finance arrangements, ensuring compliance with Sharia principles

Suggested Schedules

1. Schedule A - Payment Details: Detailed breakdown of payment amounts, including original contract sum, approved changes, and current payment

2. Schedule B - Work Description: Detailed description of completed work covered by the waiver

3. Appendix 1 - Supporting Documents: List of attached supporting documents such as payment receipts, progress certificates, or completion certificates

4. Appendix 2 - Lower-tier Confirmations: Copies of confirmations from lower-tier subcontractors and suppliers confirming payment receipt

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant Industries

Construction

Real Estate Development

Infrastructure

Commercial Building

Residential Development

Industrial Construction

Oil & Gas Construction

Healthcare Construction

Hospitality Construction

Education Facilities

Relevant Teams

Legal

Construction

Project Management

Commercial

Finance

Procurement

Contract Administration

Risk Management

Relevant Roles

Construction Manager

Project Manager

Contract Administrator

Commercial Manager

Quantity Surveyor

Legal Counsel

Finance Manager

Project Director

Construction Director

Claims Manager

Procurement Manager

Site Manager

Contract Manager

Industries
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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